Belson: Fiscal crisis welcomes Gen-X to the real world

Thursday

Oct 30, 2008 at 12:01 AMOct 30, 2008 at 5:26 PM

Even though it was more than 30 years ago, I still have vivid memories of living in New York City during its financial crisis of the '70s. I still can see images of graffiti-covered subway cars, the high crime and urban blight.

Matthew Belson, GateHouse News Service

Even though it was more than 30 years ago, I still have vivid memories of living in New York City during its financial crisis of the '70s. I still can see images of graffiti-covered subway cars, the high crime and urban blight.

My first impression of conflicts in the world around us at that time was watching a news report on a black and white television about some convoy that had been attacked by guerrillas (probably some place in Africa or Southeast Asia). Puzzled, I asked my father why gorillas (the simian kind) would do that. I also recall sitting in my parents' car waiting to fill up at the local gas station.

But most of all I remember sensing the anxiety of my family about the turbulence going on around us in our city and to a lesser extent, in the

world.

Now, based on the events of the past two weeks, that anxiety has returned. However, instead of sensing it viscerally through my parents, I now feel its full force.

I make no pretensions of being an economist but until recently I would have said that, "Yes, we're in for some challenging times, but we'll get through this."

I still believe we'll pass through this recession, but the impact and damage will be severe.

When I talk to friends about the deteriorating economic situation, there is shock at its rapidity.

There is also tremendous anger.

The frustration from my contemporaries who have young families or who are just married, stems from how on paper we have done all of the safe and sensible financial planning steps you're supposed to do.

We have mortgages we can afford, we are not saddled by major debt, and we started to save and invest for our kids' college tuition and our retirement.

Granted, this is certainly an enviable position compared to millions of other Americans who face immediate, crushing financial hard times, but we are angry because we are still faced with uncertainty, despite following the advice of expert financial advisers and doing the "safe" things.

The stress comes because we felt like we were on a stable financial tract not only for ourselves but also for our children. We save, we cut expenses, and we invest conservatively in our 401(k)s so our kids can also have the same opportunities as we did.

Most of us in Gen-X already expect to work until we physically no longer can and that any kind of financial cushion for retirement is our responsibility.

We already know that decades of hard work are ahead of us, along with some responsible financial planning. But given the recession and a financial market in turmoil, even this no longer seems doable.

Lately, one of the things that chafes me is when financial analysts and advisers say this is all part of the boom and bust cycle of the market and how if you're lucky to be young, you stand a good chance of recovering losses and eventually starting to once again grow your nest egg.

To me, statements such as these are like missing the million-dollar question on a game show and getting the complete Tupperware set as a consolation prize.

One of the real tragedies is the people who are retired, or, like our parents who are starting to retire and face the prospect that their retirement money, which they worked hard for decades to build up, will probably not be enough.

I used to think, based on my experience, that nothing propels a person into adulthood like becoming a parent. I still think this is true, but I would add to this the moment when you realize that even with hard work, being responsible, and diligent planning there are forces beyond your control that can, and will, turn everything completely upside down.

Sure, we will get through this period. I just hope I can temper the accompanying stress and anxiety that my own kids may experience viscerally like I did three decades ago.

Matthew Belson is new media editor for WickedLocalCapeCod.com.

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